Income Statement Format Single Step

A single step income statement is a format of income statement which uses just a single subtraction i e.

Income statement format single step. A single step income statement is a financial statement format that lists all expenses including cost of good sold in one column. The single step income statement presents information in a simplified format. Put simply a single step income statement does not separate the expenses out into categories like the cost of goods sold operating expenses non operating expenses or other expenses. For example in the revenue section it records all types of revenues no mater those revenues are from the operation or non operation.

A single step income statement offers a simplified snapshot of a company s revenue and expenses. The equation used in a single step income statement is. An income statement is an accounting document that summarizes the net profit or loss of a company by subtracting the expenses from the income. A single step income statement is a format in which all of the expenses including the cost of goods sold are listed in one column.

A single step income statement presents the revenue expenses and ultimately the profit or loss generated by a business but it reports on this information by using just one equation to calculate profits. The total of all revenues incomes and gains minus the total of all expenses and losses. Net income revenues gains expenses losses.

It uses a single subtotal for all revenue line items and a single subtotal for all expense line items with a net profit or loss appearing at the bottom of the report. This straightforward document merely conveys a company s revenue expenses and bottom line net.